Fix and Flip Lending Software Built Around ARV
Fix and flip lending is about two things: getting the ARV right at origination and managing the project execution through to payoff. Lend Engine automates both sides — initial underwriting and ongoing draw management — so your team stays in control without manual overhead.
ARV Underwriting, Automated
After-repair value is the foundation of every fix and flip loan. Get it wrong and you have an LTV problem before the borrower swings a hammer. Get it right and you have a well-secured loan with a clear exit. The challenge is that accurate ARV requires time: comp selection, adjustment for rehab scope, market trend analysis, and a judgment call on the property's post-renovation appeal.
Lend Engine's AI does all of this automatically. The platform pulls recent comparable sales filtered by bedroom count, square footage, and proximity, adjusts for the proposed rehab scope and condition improvements, and applies market trend data to account for where prices are heading — not just where they have been. The output is an ARV estimate with a confidence range and a comp set your team can review, modify, and approve.
The entire process takes minutes. Your underwriter spends their time confirming the AI's judgment rather than building the analysis from scratch — which means more deals reviewed, faster responses to borrowers, and a more defensible credit file.
Draw Management Built Into the Platform
Fix and flip loans do not end at funding. The real work — and the real risk — happens over the following 4 to 8 months as the borrower completes the renovation. Most lenders manage this with spreadsheets, email chains, and manual inspection scheduling. Lend Engine replaces all of that.
Draw schedules are configured at origination based on the approved scope of work and budget. Borrowers submit draw requests through the borrower portal — including progress photos and contractor invoices. Lend Engine routes each request through your inspection workflow, AI-assists the inspection review to flag discrepancies between invoiced work and visible progress, and then processes approved disbursements automatically.
Budget-versus-actual tracking updates in real time throughout the project. If costs exceed the approved budget by more than your configured threshold, the platform triggers an alert and routes the budget overrun for review before the next draw is disbursed. You are never blindsided by a cost overrun the week before a final draw.
How Fix-and-Flip Underwriting Works in Lend Engine
From application to term sheet, Lend Engine automates the entire fix-and-flip underwriting workflow in six steps.
Borrower submits the deal through your branded portal — property address, purchase price, rehab budget, ARV estimate, and contractor details. Lend Engine auto-populates public record data and flags incomplete fields before it hits your desk.
The AI pulls comparable sales within your configured radius, filters by property type and condition, and generates an ARV range with a confidence score. Your team reviews and adjusts comps directly in the deal dashboard.
Lend Engine compares the proposed rehab budget against cost-per-square-foot benchmarks for the market and flags line items that fall significantly above or below expected ranges.
The platform cross-references the contractor against your portfolio history and checks license and insurance status. Borrower experience and prior flip performance are scored automatically.
All data points converge into a structured risk assessment: LTV, LTC, ARV-to-loan ratio, exit timeline feasibility, and borrower track record. The AI recommends Approve, Approve with Conditions, or Decline — with full rationale.
Approved deals generate a term sheet and draw schedule automatically — pre-populated with your rate, points, and disbursement milestones tied to the scope of work. Ready for borrower review within minutes.
Fix and Flip Features That Cover the Full Loan Lifecycle
From the initial ARV analysis to the final draw disbursement — every step managed in one platform.
ARV Analysis and Comp Selection
AI-driven comparable sales analysis filtered for bedroom count, square footage, condition, and proximity. Adjusts for rehab scope and produces an ARV estimate with a confidence range your team can review and approve.
AI NativeScope of Work Analysis
Upload the contractor's scope of work and Lend Engine analyzes it against your approved budget, flags line items that appear mispriced for the market, and estimates the value-add contribution of each rehab category to the ARV.
AutomatedContractor Vetting
Lend Engine maintains a contractor database tracking license status, insurance certificates, and performance history across your entire portfolio. New contractors go through an automated vetting workflow before the first draw.
Built-InDraw Schedule Management
Configurable draw schedules tied to project milestones. Borrowers submit draw requests with supporting documentation through the portal. AI-assisted inspection review routes approvals and flags discrepancies automatically.
AutomatedRehab Budget Tracking
Real-time budget-vs-actual tracking throughout the renovation. Configurable alerts fire when costs exceed approved budgets. Every budget variance is logged with a timestamp and routed for review before the next disbursement.
Real-TimeExit Timeline Scoring
The AI scores each deal's projected timeline from funding to payoff against local market absorption rates. Deals with unrealistic timelines are flagged at origination — before a maturity extension becomes the likely outcome.
AI NativeFix and Flip Loan Metrics Lend Engine Tracks
Every number that matters for a fix and flip loan — from origination through payoff — tracked automatically.
A Fix-and-Flip Deal, Underwritten in Minutes
Property: 3BR / 2BA single-family in Phoenix, AZ
Purchase Price: $310,000
Rehab Budget: $85,000 (kitchen, bathrooms, flooring, exterior paint)
After-Repair Value (ARV): $480,000 — based on 6 comps within 0.5 miles, adjusted for condition and scope
Loan Amount: $340,000 (90% LTC / 71% of ARV)
Term: 12 months, interest-only
Rate: 11.5% / 2 points origination
Lend Engine's AI pulled comps, validated the rehab budget against local cost-per-sqft benchmarks, scored the contractor's track record (4 prior successful flips in portfolio), and generated a term sheet with a 5-draw schedule — all within 22 minutes of submission. The underwriting report flagged one condition: verify contractor insurance renewal before first draw disbursement.
Frequently Asked Questions
Common questions from fix and flip lenders evaluating Lend Engine.
What is fix and flip lending software?
Fix and flip lending software is a loan origination system built for lenders who finance residential rehabilitation projects. It combines ARV-based underwriting — evaluating after-repair value, rehab scope, and projected profit margin — with draw management tools that track disbursements throughout the renovation. Lend Engine handles both sides: the initial underwriting and the ongoing project monitoring from the first draw to payoff.
How does Lend Engine calculate ARV?
Lend Engine's AI pulls comparable sales data for the subject property's market, filters for relevant comps based on bedroom count, square footage, and condition, and adjusts for the proposed rehab scope and the value-add contribution of specific renovation categories. The result is an ARV range with a point estimate and confidence score. Your team can review the comp selection, add or remove comps, and override the estimate with supporting rationale — all within the deal dashboard — giving you a defensible, auditable ARV opinion for every file.
Does Lend Engine include draw management for rehab loans?
Yes. Lend Engine includes a full draw management module built directly into the platform — no third-party integration required. Draw schedules are configured at origination based on the approved scope of work. Borrowers submit draw requests through the borrower portal with supporting documentation. The platform routes requests through your inspection workflow, AI-assists the review to flag discrepancies, and processes approved disbursements with an automated audit trail. Budget-vs-actual tracking updates in real time throughout the project.
Can I set maximum LTC and LTV limits by market?
Yes. Lend Engine's criteria engine supports LTC and LTV limits configured at the state, county, MSA, or property type level. You can set a different maximum LTC for a high-appreciation coastal market versus a slower-moving tertiary market, and different LTV limits for full rehabs versus cosmetic flips. Any deal that exceeds your configured thresholds is automatically flagged before it advances through the pipeline, giving you systematic enforcement of your lending box without relying on manual review to catch exceptions.
How does Lend Engine handle contractor vetting?
Lend Engine maintains a contractor database that tracks license status, insurance certificates, prior project performance across your loan portfolio, and any issues or disputes. When a borrower identifies a contractor for a new project, the platform cross-references the contractor's history automatically and flags any concerns for your team's review. For contractors not already in the system, the platform initiates an automated vetting workflow that collects license verification, insurance certificates, and references before the first draw is disbursed — ensuring you never fund a project with an unvetted contractor.
Other Loan Programs Supported
Originate Fix and Flip Loans Faster
See how Lend Engine automates ARV underwriting and draw management so your team can close more deals with less overhead.